Assignment: 01

Course code: CE301

Course title: Professional Practices and Communication
Section: 01
Date: 16-05-2020

Submitted By: Umme Habiba Shanchita

Student ID: 2018-1-22-002

Submitted To: Ibrahim AKM

Adjunct Faculty
Civil Engineering Department
 (a)

Problem Statement (i): Construct one treatment plant whose estimated value is
1500 lakh Taka.

Answer: To construct one treatment plant whose estimated value is 1500 lakh Taka, a PE should
follow the open tendering method (OTM).

Constructing one treatment plant whose estimated value is 1500 lakh Taka is not a small work.
We should choose OTM in this case because, open tendering is the process aimed at acquiring
goods, works and services at the lowest price. Advertisements are done publicly in this method.
So, many tenderers can join and offer their deal. It is also known as open competitive bidding,
open competition or open solicitation. Then, we can choose the best deal among them.

Moreover, it has the advantage of allowing new or emerging suppliers to try and secure
contracts. This facilitates greater innovation. It ensures a healthy and competitive marketplace
with companies providing the best products and services. Suppliers will be encouraged to deliver
on time, adhere to the quality required and offer competitive prices. A government or
organization that subscribes to the open tender system shows the mark of good governance.

Problem Statement (ii): Buying office stationeries of 3 lakh Taka.

Answer: For buying office stationeries of 3 lakh Taka, a PE should follow the request for
quotation method (RFQ).

Buying office stationeries of 3 lakh Taka is an incident of buying goods at a low cost.

In this method, the company releases RFQ to a group of selected providers with the purpose of
comparing prices and other basic sales terms. No tender or performance securities are required
when the RFQ method is used. The Head of the Procuring Entity shall strictly control the use of
the RFQ Method in order to ensure that there is no abuse. A decision to use RFQ method shall be
approved in writing by the Head of the Procuring Entity or an officer authorized by him or her.
As this procurement does not exceed the threshold specified in schedule II. In schedule II
financial limit for RFQ of goods and related services maximum 1 lakh taka in each procurement
and 3 lakh taka in annul procurement. So buying office stationeries of 3 lakh taka meets the
requirement of schedule II. Moreover, there is no need for public advertising thus it saves
money. The number of tenderers are less i.e. the company can give tender to 3 to 4 tenderers
which saves a lot of time. A complex documentation is required in this method, so there will be
less chance of corruption and the goods will be bought quickly and efficiently.

Problem Statement (iii): Cleaning the office premises by engaging day laborers
for one day.

Answer: For cleaning the office premises by engaging day laborers for one day, a PE should
follow the Force account of direct procurement method (DPM).

In schedule (II) for Direct Procurement Method maximum amount is 50,000 taka and up to
100,000 taka. Here we see that clearing the office premises is a small work and laborer cost is
under the threshold specified in Schedule (II). Force Account should be used for hiring of direct
labour for departmental needs in the value and annual aggregate amounts specified according to
Schedule II.

The decision to use this method shall be approved by the head of the Procuring Entity or an
officer authorized by HOPE. The head of a Procuring Entity shall strictly control the use of the
direct procurement method so, there will be less chance of unacceptable and fraudulent practices
and more transparency. There shall be no requirement for direct procurement to be advertised.
There shall be no requirement for a tender security in case of direct procurement, but a
performance security shall be obtained from the supplier or contractor.

So, there is no need to spend extra money and time to find a contractor and advertise. The needs
shall be met upon a market price research by a person or persons to be assigned by contracting
officer, without necessity of establishing a tender commission and of requiring the qualification
provisions stated in article. Moreover, if we use another method of tendering this service will be
costly and waste more time.
 (b)

Procurement Procurement Most Suitable Need Need Need

Item Item Type Procurement Permission of Tender Performance
Method HOPE Security Security

Construct one
treatment plant Open
whose Works Tendering No Yes Yes
estimated value Method
is 1500 lakh
Taka

Buying office Request for

stationeries of 3 Goods Quotation Yes No No
lakh Taka Method

Cleaning the
office premises Direct
by engaging Services procurement Yes No Yes
day laborers for method
one day